The invention relates to traditional Chinese medicine composition for preventing or treating lip exfoliative inflammation. The traditional Chinese medicine composition is prepared from raw materials in parts by weight as follows: 10-30 parts of clematis roots, 10-30 parts of common ducksmeat herbs and 10-30 parts of herba siegesbeckiae. According to the traditional Chinese medicine composition, a few medicinal raw materials are required and are easy to obtain, a preparation process is simple, the cost is low, and the traditional Chinese medicine composition has a remarkable curative effect on lip exfoliative inflammation. The invention further relates to a novel traditional Chinese medicine lipstick prepared from the traditional Chinese medicine composition serving as an active ingredient. The novel traditional Chinese medicine lipstick integrates lip cream, lip gloss and a spray, can be used for treating acute lip exfoliative inflammation, subacute lip exfoliative inflammation and chronic lip exfoliative inflammation and is convenient to use and easy to accept for patients.